The sum of N254.10billion was generated as Value Added Tax (VAT) in Q4 2017 as against N250.56billion in Q3 2017 and N207.35billion in Q4 2016, representing 1.41% increase Quarter-on-Quarter and 22.55% increase Year-on-Year, according to sectoral distribution of VAT data released by the National Bureau of Statistics (NBS).
An analysis of the NBS data shows that other manufacturing generated the highest amount of VAT with N28.19billion closely followed by Professional Services and Commercial and Trading both generating N22.34billion and N12.87billion respectively. The data, however, showed that mining generated the least VAT, closely followed by Pharmaceutical, Soaps & Toiletries and Local Government Councils with N32.51million, N177.19million and N201.12million generated respectively.
Further analysis of the data indicates that out of the total amount generated in Q4 2017, N121.09billion was generated as Non-Import VAT locally while N79.44billion was generated as Non-Import VAT for foreign. In addition, the balance of N53.57billion was generated as NCS-Import VAT.
The Central Bank of Nigeria (CBN) had disclosed in its Economic Report for the fourth quarter of 2017 that federally collected revenue from VAT rose to N968 billion in 2017, up by N156.7 billion or 19 per cent from N811 billion recorded in 2016.
However, on a quarter-on-quarter basis, according to the report, the VAT revenue generated by the government increased marginally by N4.57 billion (a one percent increase) to N253.46billion in Q4 2017 from N248.89 billion recorded previous quarter (Q3’17).
The Apex Bank also disclosed that of the N253.46 billion collected, N243.4 billion was transferred to the VAT Pool Account from which the federal government was allocated N36.58 billion while the state and local governments were allotted N121.66 billion and N85.16 billion, respectively.
The report stated: “The provisional Federal Government retained revenue for the fourth quarter of 2017 was estimated at N731.61 billion. Of the total revenue, Federation Account accounted for 87.2 per cent, while VAT, Federal Government Independent Revenue and Exchange Gain gulped 5.0 percent, 4.5 percent and 3.3 percent, respectively.”
Besides, the study said: “The total allocation to state governments from the Federation Account, including the 13.0 percent Derivation Fund and the VAT Pool Account was N578.05 billion in the review quarter. This was lower than the proportionate quarterly budget estimate by 31.9 per cent. A breakdown showed that the receipts from the Federation Account totalled N456.39 billion (79.0 percent), while the share from VAT pool account stood at N121.66 billion (21.0 percent). The receipt from the VAT Pool Account was 43.7 per cent below the proportionate budget estimates.”
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